The Swiss Central Bank stepped in to defend its Swiss Franc (CHF) overnight in Asia. The move rocked the EUR/CHF as shown below.

Alphaville: An FX trading source tells FT Alphaville, the SNB was seen stepping in on the EBS platform — one of the two main FX interbank trading places — with bids of 1.4905. The market was trading at 1.47.

The move caused chaos because the SNB does not usually intervene in the Asian market, and many trading counterparties are simply not permitted to trade outside of local limits.

Traders are reportedly pissed as it obviously ruined a lot of people given the suddenness and sharpness of the currency move shown above. A Chief Dealer at Citi thinks the Swiss central bank may have overbid by accident.

Yet the bigger question to us is simply -- Is Switzerland threatened by a weaker Euro? Is there a Swiss angle to any potential euro currency crisis which we should be aware of?